7 CFR Part 4284 — Grants

PART 4284—GRANTS Authority: 5 U.S.C. 301 and 7 U.S.C. 1989. Subpart F also issued under 7 U.S.C 1932(e). Subpart J also issued under 7 U.S.C. 1627c. Subpart K also issued under 7 U.S.C. 1632b. Source: 62 FR 42387, Aug. 7, 1997, unless otherwise noted. Subparts A-E [Reserved] Subpart F—Rural Cooperative Development Grants Source: 89 FR 75771, Sept. 16, 2024, unless otherwise noted. § 4284.501 Purpose. This subpart implements the Rural Cooperative Development Grant (RCDG) Program. Grants are made to Nonprofit Institutions who in turn provide Technical Assistance including Cooperative Development to start, expand or improve Cooperatively and Mutually Owned Businesses in Rural Areas. § 4284.502 Organization of subpart. The information in this subpart is organized into six main topics: (a) General information. (b) Eligibility information. (c) Application requirements information. (d) Application processing information. (e) Award information. (f) Post-award information. (g) Other. (2) Section 4284.600 includes the Office of Management and Budget (OMB) control number for reporting and recordkeeping requirements under this subpart. § 4284.503 Definitions. These are the definitions for terms used in this subpart. Additional terms used in this subpart are found in the applicable laws and regulations, in particular 2 CFR part 200 and 7 CFR part 11. 1994 Institution Adverse Decision Adverse Decision Letter Agency Applicant Board of Directors (Board) Business Plan Center Cooperative Cooperative Development Economic Development Equipment Feasibility Study Federal Award Grant Agreement or Financial Assistance Agreement Institutions of Higher Education Key Personnel Letter of Conditions Matching Funds Mutually Owned Business Networking New Cooperative Approach Nonprofit Institution Operating Cost Period of Performance Project Project Cost Public Body Real Property Recipient Research and Development (R&D) Rural and Rural Area (1) An area that is attached to the urban area of a city or town with more than 50,000 inhabitants by a contiguous area of urbanized census blocks that is not more than two (2) census blocks wide. Applicants from such an area should work with their RD State office to request a determination of whether their project is located in a Rural Area under this provision. (2) For the purposes of this definition, cities and towns are incorporated population centers with definite boundaries, local self-government, and legal powers set forth in a charter granted by the State. (3) For the purposes of this definition, populations of individuals incarcerated on a long-term or regional basis shall not be included in determining whether an area is “rural” or a “rural area”. (4) For the purposes of this definition, the first 1,500 individuals who reside in housing located on a military base shall not be included in determining whether an area is “rural” or a “rural area”. (5) For the Commonwealth of Puerto Rico, the island is considered Rural and eligible for Business Programs assistance, except for the San Juan Census Designated Place (CDP) and any other CDP with greater than 50,000 inhabitants. CDPs with greater than 50,000 inhabitants, other than the San Juan CDP, may be determined to be eligible if they are “not urban in character.” (6) For the State of Hawaii, all areas within the State are considered Rural and eligible for Business Programs assistance, except for the Honolulu CDP within the County of Honolulu. (7) For the purpose of defining a Rural Area in the Republic of Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands, the Agency shall determine what constitutes Rural and Rural Area based on available population data. (8) The determination that an area is “rural in character” will be made by the Under Secretary of RD. The process to request a determination under this provision is outlined in paragraph (8)(ii) of this definition. (i) The determination that an area is “rural in character” under this definition will apply to areas that are within: (A) An urban area that has two points on its boundary that are at least 40 miles apart, which is not contiguous or adjacent to a city or town that has a population of greater than 150,000 inhabitants or the urban area of such a city or town; or (B) An urban area contiguous and adjacent to a city or town of greater than 50,000 inhabitants that is within one-quarter mile of a Rural Area. (ii) Units of local government may petition the Under Secretary of RD for a “rural in character” designation by submitting a petition to both the appropriate RD State Director and the Administrator on behalf of the Under Secretary. The petition shall document how the area meets the requirements of paragraph (8)(i)(A) or (B) of this definition and discuss why the petitioner believes the area is “rural in character,” including, but not limited to, the area's population density, demographics, and topography and how the local economy is tied to a rural economic base. Upon receiving a petition, the Under Secretary will consult with the applicable Governor or leader in a similar position and request comments to be submitted within five (5) business days, unless such comments were submitted with the petition. The Under Secretary will release to the public a notice of a petition filed by a unit of local government not later than 30 days after receipt of the petition by way of publication in a local newspaper and posting on the Agency's website, and the Under Secretary will make a determination not less than 15 days, but no more than 60 days, after the release of the notice. Upon a negative determination, the Under Secretary will provide to the petitioner an opportunity to appeal a determination to the Under Secretary, and the petitioner will have 10 business days to appeal the determination and provide further information for consideration. Rural Development State State Office Subaward Technical Assistance Underserved and Economically Distressed Value-Added § 4284.504 Exception authority. The Administrator of the Agency may, on a case-by-case basis, grant an exception to any non-statutory requirement or provision of this subpart provided that such exception is in the best financial interests of the Federal Government. Exercise of this authority cannot be in conflict with applicable laws. § 4284.505 [Reserved] § 4284.506 Conflict of interest. No conflict of interest or appearance of conflict of interest will be allowed. (a) Description. (1) Applicant Board, employees, consultants, and contractors. (2) Recipient Board, employees, consultants, and contractors. (3) Center Board, employees, consultants, and contractors. (4) Subrecipients and their employees, consultants, and contractors. (5) Immediate family members of those listed in paragraphs (a)(1) through (4) of this section. (b) Written disclosure. (c) Assistance to employees, relatives, and associates. (d) Member/delegate clause. § 4284.507 [Reserved] § 4284.508 Compliance with other laws and regulations. The Agency, Applicants, and Recipients must comply with all applicable laws and regulations. An effort has been made to identify the most-commonly cited laws and regulations and to reference them as follows: (a) Federal laws. (1) Equal Credit Opportunity Act (15 U.S.C. 1691 et seq. (2) Consumer Credit Protection Act (15 U.S.C. 1601 et seq. (3) Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq. (4) The Civil Rights Act of 1964, Title VI (42 U.S.C. 2000d et seq. (5) The Rehabilitation Act of 1973, Section 504 (29 U.S.C. 794). (b) Federal regulations. (c) Departmental regulations. (1) 2 CFR parts 400 through 499. (2) 7 CFR part 11. (3) 7 CFR part 15. (d) Agency regulations. (1) 7 CFR part 1900. (2) 7 CFR part 1901, subpart E. (3) 7 CFR part 1951. (4) 7 CFR part 1970. (e) Access to laws and regulations. https://uscode.house.gov/. (2) Regulations may be accessed through the CFR. At the time this subpart was published, the CFR may be accessed electronically at this website: https://www.ecfr.gov/. §§ 4284.509-4284.519 [Reserved] § 4284.520 Applicant eligibility. (a) Eligible Applicants. (1) Applicant type. (2) Applicant location. (3) Unique entity identifier (UEI). (4) Multiple grant eligibility. (b) Ineligible Applicants. (1) The Applicant is an individual, for-profit entity, or Public Body. (2) The Applicant is debarred or suspended or is otherwise excluded from, or ineligible for participation in Federal assistance programs under Executive Order 12549, “Debarment and Suspension.” See 2 CFR part 417 for more information. (3) The Applicant has an outstanding judgment obtained against the organization by the United States in a Federal Court (other than United States Tax Court). (4) The Applicant is delinquent on the payment of Federal income taxes. (5) The Applicant is delinquent on Federal debt. (6) The Applicant has been convicted of a felony criminal violation under any Federal law within the past 24 months. (7) The Applicant has unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability. (8) The Applicant has an award through this program that is not scheduled to end until after September 30 (for awards that began the preceding October 1) of the current Federal fiscal year, or December 31 (for awards that began the preceding January 1) of the current calendar year. § 4284.521 [Reserved] § 4284.522 Project eligibility. (a) Eligible Projects. (1) Rurality. (2) Project focus. (3) Amount requested. (4) Matching Funds. (i) Matching Funds. (B) Must be from non-Federal sources unless authorized to be used as Matching Funds by the legislation authorizing the Federal source of funding. (C) Must be spent in advance or as a pro-rata portion of grant funds being spent. (ii) In-kind contributions. (B) You must be able to document and verify the number of hours worked and the value associated with any in-kind contribution being used to meet a Matching Funds requirement. (C) In-kind contributions provided by individuals, businesses, or Cooperatives which are being assisted by the Center cannot be provided for the direct benefit of their own Projects as USDA RD considers this to be a conflict of interest. (5) Use of funds. (6) Period of Performance. (b) Ineligible Projects. (1) Requests more than the maximum grant amount; (2) Focuses assistance on one Cooperatively or Mutually Owned Business; (3) Includes a conflict of interest (see § 4284.506) where the expenses associated with the conflict of interest exceed 10 percent of the Project Cost. If the costs associated with the conflict of interest are 10 percent or less, the process in paragraph (b)(4) of this section will be followed; (4) Includes unallowable costs (see § 4284.525) totaling more than 10 percent of Project Costs. If the application includes 10 percent or less of Project Costs in unallowable costs, and the application is otherwise eligible and selected for funding, those unallowable costs must be removed. If time permits, the Agency may allow those unallowable costs to be replaced with allowable costs. Otherwise, the amount of the Award will be reduced accordingly. If we cannot determine the percentage of unallowable costs, your application will not be considered for funding. §§ 4284.523-4284.524 [Reserved] § 4284.525 Use of grant and Matching Funds. (a) Allowable uses of grant and Matching Funds. (1) Costs associated with establishing or operating a Center, including legal services, accounting services, clerical assistance, technical services, office supplies, hiring employees, monitoring contracts, professional development for staff, attending conferences that would advance Cooperative Development and its practice, and Board travel; (2) Technical Assistance including Cooperative Development as defined in § 4284.503; (3) Costs for coordination of services and sharing of information among the Centers; and (4) Providing loans and/or grants as Subawards per 2 CFR part 200 for Technical Assistance including Cooperative Development. (b) Unallowable uses of grant and Matching Funds. (1) Pay for the preparation of the grant application; (2) Pay any costs of the Project incurred prior to the date of grant approval; (3) Pay expenses not directly related to the funded Project; (4) Pay for Board/advisory council member's time; (5) Pay for the Operating Costs of any entity receiving assistance from the Recipient; (6) Fund R&D; (7) Duplicate activities paid for by another Federal grant program or activities charged to a previous RCDG Project; (8) Pay for assistance to any private business enterprise which does not have at least 51 percent ownership by those who are either citizens of the United States or reside in the United States after being legally admitted for permanent residence; (9) Pay for any goods or services from a person or entity who has a conflict of interest with the Recipient; (10) Pay any judgment or debt owed to the United States; (11) Purchase or make improvements to Real Property; (12) Plan, develop, repair, rehabilitate, acquire, or construct a building or facility; (13) Purchase, lease purchase, or install Equipment; (14) Purchase or pay for the repair of vehicles; or (15) Fund activities considered unallowable by the applicable cost principles, mostly of which are included in 2 CFR part 200, subpart E, or successor regulation. §§ 4284.526-4284.529 [Reserved] § 4284.530 Notifications. The Agency will issue any program notifications on the program website. (a) Amount of funding available. (b) Underserved and Economically Distressed Areas. (c) Additional merit evaluation criteria. (d) Other. § 4284.531 Application requirements. All applications must include the following: (a) Application forms. (1) SF-424, “Application for Federal Assistance.” (2) SF-424 A, “Budget Information—Non-Construction Programs.” (b) Proposal. (1) Title page. (2) Table of contents. (3) A summary of the proposal should briefly describe the Center, the goals of the Project, and the amount requested. (4) Applicants must discuss how the following are met: (i) Eligibility requirements in § 4284.520; including how they identify as an Institution of Higher Education or Nonprofit Institution. (ii) Project eligibility requirements in § 4284.522; and (iii) Eligible use of grant and Matching Funds requirements in § 4284.525. (5) The proposal narrative should address how the Center will improve the economic conditions of Rural Areas by providing Technical Assistance including Cooperative Development. In particular, the Applicant must: (i) Substantiate that the Center will use RCDG funds to serve Rural Areas in the United States as defined in § 4284.503. (ii) Provide a description of the contributions that this Project is likely to make that will improve the economic conditions of the Rural Areas served by the Center. (iii) Discuss how the Center, in carrying out the activities, will seek, where appropriate, the advice, participation, expertise, and assistance of representatives of business, industry, educational institutions, the Federal Government, Tribal Governments, and State and local governments. (iv) Discuss how the Center intends to take all practicable steps to develop continuing sources of financial support for the Center, particularly from sources in the private sector. Applicants should indicate what financial support has been received in the past three (3) years from private sources and share plans of how the Applicant intends to secure long term sustainability of the Center. (v) Merit evaluation criteria must be addressed in narrative form by the Applicant. (A) Experience. ( 1 ( 2 ( 3 ( 4 ( 5 ( 6 ( 7 ( 8 ( 9 ( 10 ( 11 e.g., (B) Work plan and budget. ( 1 ( 2 ( 3 ( 4 ( 5 (C) Qualifications of Key Personnel. ( 1 ( 2 ( 3 (D) Verification of Matching Funds. (vi) Applicants must certify that Matching Funds will be spent at the same time grant funds are anticipated to be spent and that expenditures of Matching Funds shall be pro-rated or spent in advance of grant funding, such that for every dollar of the grant funds requested, at least 25 cents (5 cents for 1994 Institutions) of Matching Funds will be expended. (vii) To measure the success of the Project in a quantitative way, Applicants must have baseline and target performance metrics and will have a baseline metric of zero. Applicants must provide a target metric for each of the following performance metrics: (A) Number of Rural groups assisted. (B) Number of Cooperatives assisted. ( 1 ( 2 (C) Number of Mutually Owned Businesses (LLC/LLP) assisted. ( 1 ( 2 (D) Number of other businesses assisted. ( 1 ( 2 (E) Number of Business Plans developed. (F) Number of Cooperatives incorporated. (G) Number of Feasibility Studies completed. (H) Number of workshops/seminars conducted. (I) Number of conferences held. ( 1 ( 2 (J) If working with housing, number of housing units created/saved. (K) For consumer co-ops (grocery, retail) number of people with access to goods or services. (L) Financial loss avoided as a result of `no-go' decision in the Cooperative Development process. (M) Any additional performance measures as outlined in your Financial Assistance Agreement, or specified in the annual notification. ( 1 ( 2 e.g., § 4284.532 [Reserved] § 4284.533 Submission requirements. Unless otherwise specified in an annual notification issued under § 4284.530, the following requirements apply to all applications. (a) Submission period. (b) Submission process. §§ 4284.534-4284.539 [Reserved] § 4284.540 Application processing. The following information describes the way the Agency will process applications, including the evaluation of eligibility, risk, and merit. (a) Eligibility evaluation. (b) Risk evaluation. (1) Typically, the Agency will not determine that an application is ineligible for funding based on the results of the risk evaluation, unless the Agency cannot find a way to reasonably mitigate the risk posed by making an award. (2) If risk evaluation findings identify significant shortcomings in the Applicant's ability to manage Federal funds, the Agency may determine that the application is ineligible for funding. (3) The Agency will determine if the Applicant has satisfactory performance for all Federal Awards received in the last five (5) years, based upon review of deficiencies reported in the Federal Awardee Performance and Integrity Information System, or its successor system, the Do Not Pay system, or its successor system, and the Agency's own internal financial and record-keeping systems and files. Satisfactory performance includes timely submission of required reports and documents, timely completion of tasks, and proper use of funds, including achieving the level of funds approved and committed for Underserved and Economically Distressed areas. (c) Merit evaluation (Up to 100 total points). (1) Experience (Up to 30 points). (i) Up to 5 points for track record in providing Technical Assistance to promote and assist the development of Cooperatively and Mutually Owned Businesses. (ii) Up to 5 points for ability to facilitate Cooperative Development that results in the establishment of Cooperatively and Mutually Owned Businesses in Rural Areas. (iii) Up to 5 points for ability to facilitate the establishment of New Cooperative Approaches in Rural Areas. (iv) Up to 5 points for the ability to assist in the retention of businesses in Rural Areas. (v) Up to 5 points for ability to create and/or save jobs that improve economic conditions of Rural Areas. (vi) Up to 5 points for ability to improve other economic conditions in Rural Areas. (2) Work plan and budget (Up to 45 points). (i) Work plan and budget detail. (A) 0 points will be awarded if the application does not address paragraphs (c)(2)(i)(B) through (E) of this section. (B) Up to 10 points will be awarded if the application provides a detailed narrative description for each of the specific tasks to be completed. (C) Up to 10 points will be awarded if the application provides a detailed breakdown of all estimated Project Costs, including Operating Costs, for each task with grant and Matching Funds identified separately. (D) Up to 5 points will be awarded if the application identifies the Key Personnel associated with each task. (E) Up to 5 points will be awarded if the application provides specific timeframes for each task. (ii) Underserved and Economically Distressed. (A) 0 points will be awarded if the application does not identify tasks and a budget commitment to Underserved and Economically Distressed area(s). (B) Up to 5 points will be awarded if the Applicant identifies the Underserved and Economically Distressed area(s) within their service area. (C) Up to 10 points will be awarded if the Applicant's budget commitment (grant and Matching Funds) to Underserved and Economically Distressed areas is: ( 1 ( 2 ( 3 ( 4 ( 5 (3) Networking. (i) Up to 5 points will be awarded if the Applicant describes how it intends to create and share best practices and transferrable strategies with other Centers or organizations engaged in Economic Development. (ii) Up to 5 points will be awarded if the Applicant describes how it will develop joint Technical Assistance, including Cooperative Development, projects and mentor/mentee relationships with other Centers and other organizations engaged in Economic Development. (4) Qualifications of Key Personnel (Up to 10 points). (i) 0 points will be awarded if the Applicant does not identify formal training, skills, and years of experience for any Key Personnel. (ii) 1 to 5 points will be awarded if the Applicant details the formal training, skills, and years of experience of some, but not all of the Key Personnel. (iii) 6 to 10 points will be awarded if the Applicant details the formal training, skills, and years of experience of all Key Personnel. (5) Matching Funds commitment (5 points). § 4284.541 Application withdrawal. During the period between the submission of the application and award approval, the Applicant must notify the Agency if the Project is no longer viable, or the Applicant is no longer requesting financial assistance for the Project. When the Applicant notifies the Agency, the application will be withdrawn from consideration for funding. §§ 4284.542-4284.549 [Reserved] § 4284.550 Award selection. Applications will be selected for further processing and consideration of an award after the merit evaluation process is completed for all eligible applications. Applications will be ranked solely based on the points awarded, and they will be funded in rank order until available funds are expended. If there is a tie, the Administrator of the Agency will use discretion to break the tie to improve the geographic diversity of Recipients and/or prioritize Projects that advance the Department or Agency's key priorities, goals, and objectives. If an application cannot be fully funded, the Agency may offer partial funding to the extent funds are available. If an application is ranked and not funded, it will not be carried forward into the next funding competition. § 4284.551 Notification of successful Applicants. (a) The Agency will notify the Applicants whose applications can be funded using available funds with a Letter of Conditions. The Letter of Conditions will provide the conditions under which an award can be approved as well as a copy of the term of the award. (b) Applicants receiving a Letter of Conditions will have 60 calendar days to meet the conditions of the award. Some awards may be subject to additional conditions, depending on the nature of the Project and the Agency's determination of risk. The following additional forms must be completed by all successful Applicants: (1) Form RD 1942-46, “Letter of Intent to Meet Conditions.” (2) Form RD 1940-1, “Request for Obligation of Funds.” (3) Form RD 400-4, “Assurance Agreement.” (4) SF-LLL, “Disclosure of Lobbying Activities,” for entities that engage in lobbying activities. (5) Form RD 4280-2, “Rural Business-Cooperative Service Financial Assistance Agreement.” § 4284.552 Notification of unsuccessful Applicants. Applicants whose applications are ineligible for financial assistance or did not score high enough to be funded will be notified as soon as is practicable. The notification will be in writing using an Adverse Decision Letter. This letter will outline the reason(s) for the Agency's decision and any dispute resolution alternatives available to the Applicant. § 4284.553 Award approval. Applicants whose applications are eligible for financial assistance and that score high enough to be funded will have their awards approved by the Agency once the Applicant has met all of the conditions of the award. The approval will be conveyed through the execution of Form RD 4280-2, which is the Financial Assistance Agreement, and provides all terms of the award. Once the award has been approved, the Recipient may begin work on the Project and incur costs. § 4284.554 Multi-year award. The Agency may provide a multi-year funding opportunity to previous Recipients. If the Agency provides a multi-year funding opportunity, the application requirements and award process will be included in the annual notification. §§ 4284.555-4284.559 [Reserved] § 4284.560 Reporting requirements. Recipients are required to submit financial reports and performance reports on a semi-annual basis. A final financial report and performance report must also be submitted within 120 days after the expiration or termination of the grant. (a) Failure to submit either a financial report or a performance report within the specified timeframes may result in the Agency withholding grant funds. (b) Recipients must complete the Project in accordance with the terms and conditions specified in the approved work plan and budget, the Financial Assistance Agreement, and the Letter of Conditions. (c) Recipients must expend funds only for eligible purposes and will be monitored by the Agency for compliance. Recipients must maintain a financial management system and maintain compliance with Federal Cost Principles in accordance with 2 CFR parts 200 through 299. (1) Reporting format and timing. (2) Project outcome performance report. § 4284.561 Monitoring awards. Awards will be monitored by Agency personnel in accordance with applicable laws, regulations, and policies (see § 4284.508 for more information). The Agency will designate a contact person for each award. The Agency may terminate or suspend the award for lack of adequate or timely progress, reporting, documentation, or for failure to comply with Agency requirements. §§ 4284.562-4284.599 [Reserved] § 4284.600 OMB control number. The reporting and recordkeeping requirements contained in this subpart have been approved by OMB and have been assigned OMB control number 0570-0006 in accordance with the Paperwork Reduction Act of 1995. Subparts G-I [Reserved] Subpart J—Value-Added Producer Grant Program Source: 89 FR 75778, Sept. 16, 2024, unless otherwise noted. § 4284.901 Purpose. This subpart implements the Value-Added Agricultural Product Market Development grant program (Value-Added Producer Grants (VAPG)) that provides grants to support Agricultural Producers' for-profit businesses that produce and market Value-Added Agricultural Products. § 4284.902 Organization of subpart. The information in this subpart is organized into six main topics: (a) General information. (b) Eligibility information. (c) Application requirements information. (d) Application processing information. (e) Award information. (f) Post-award information. (g) Other. (2) Section 4284.1000 includes the Office of Management and Budget (OMB) control number for reporting and recordkeeping requirements under this subpart. § 4284.903 Definitions. These are the definitions for terms used in this subpart. Additional defined terms used in this subpart may be found in the applicable laws and regulations cited in § 4284.908, in particular 2 CFR part 200. If a term is defined differently in an applicable regulation and in this subpart, such term shall have the meaning as found in this subpart. Agency Agricultural Commodity Agricultural Food Product Agricultural Producer, Independent Producer or Producer Agricultural Producer Group Applicant Beginning Farmer or Rancher Business Plan Change in Physical State Emerging Market Equipment Family Farm Farm or Ranch Farm- or Ranch-Based Renewable Energy Farmer or Rancher Cooperative Feasibility Study Fiscal Year Food Safety Harvester Independent Producer Immediate Family Key Personnel Letter of Conditions Local or Regional Supply Network Locally-Produced Agricultural Food Product (1) The locality or region in which the final product is marketed, so that the total distance that the product is transported is less than 400 miles from the origin of the product; or (2) The State in which the product is produced. Majority-Controlled Producer-Based Business Venture (1) One or more Producers (Agricultural Producers); or (2) One or more entities, 100 percent of the ownership and control of which is held by one or more Producers (Agricultural Producers). The term `entity' means— (i) A partnership; (ii) A limited liability corporation; (iii) A limited liability partnership; or (iv) A corporation. Market Expansion Marketing Plan Matching Funds Medium-Sized Farm or Ranch Mid-Tier Value Chain (1) Targets and strengthens the profitability and competitiveness of Small- and Medium-Sized Farms or Ranches that are structured as a Family Farm; and (2) Obtains agreement from an eligible Agricultural Producer Group, Farmer or Rancher Cooperative, or Majority-Controlled Producer-Based Business Venture that is engaged in the value chain on a marketing strategy. Period of Performance Physical Segregation Planning Grant Produced in a Manner that Enhances the Value of the Agricultural Commodity Producer Pro forma Financial Statement Program Income Project Project Cost Qualified Consultant Recipient Rural Development (RD) Small-Sized Farm or Ranch Socially-Disadvantaged Farmer or Rancher Socially-Disadvantaged Group State Steering Committee TTB Permit Value-Added Agricultural Product (1) Meets one of the following methodologies: (i) Has undergone a Change in Physical State; (ii) Is Produced in a Manner that Enhances the Value of the Agricultural Commodity; (iii) Is Physically Segregated in a manner that results in the enhancement of the value of the Agricultural Commodity; (iv) Is a source of Farm- or Ranch-Based Renewable Energy, including E-85 fuel; or (v) Is aggregated and marketed as a Locally Produced Agricultural Food Product; and (2) As a result of the Change in Physical State or the manner in which the Agricultural Commodity was produced, marketed, or segregated: (i) The customer base for the Agricultural Commodity is expanded; and (ii) A greater portion of the revenue derived from the marketing, processing, or Physical Segregation of the Agricultural Commodity is available to the Producer of the commodity. Veteran Farmer or Rancher Working Capital Grant § 4284.904 Exception authority. Except as specified in paragraphs (a) and (b) of this section, the Administrator of the Agency may, on a case-by-case basis, grant an exception to any requirement or provision of this subpart provided that such an exception is in the best financial interests of the Federal Government. Exercise of this authority cannot be in conflict with applicable law. (a) Applicant eligibility. (b) Project eligibility. § 4284.905 [Reserved] § 4284.906 Conflict of interest. No conflict of interest or appearance of a conflict of interest will be allowed. (a) Description. (1) Recipient owners, employees, officers, agents, consultants, and contractors. (2) Immediate family members of those listed in paragraph (a)(1) of this section. (b) Written disclosure. (c) Assistance to employees, relatives, and associates. (d) Member/delegate clause. § 4284.907 [Reserved] § 4284.908 Compliance with other laws and regulations. The Agency, Applicants, and recipients must comply with all applicable laws and regulations. An effort has been made to identify the most-commonly cited laws and regulations and reference them as follows: (a) Federal laws. (1) Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq. (2) The Civil Rights Act of 1964, Title VI (42 U.S.C. 2000d et seq. (3) The Rehabilitation Act of 1973, Section 504 (29 U.S.C. 794). (b) Federal regulations. (1) 2 CFR parts 1 through 200. (2) 27 CFR part 1. (c) Departmental regulations. (1) 2 CFR parts 400 through 499. (2) 7 CFR part 11. (3) 7 CFR part 15d. et seq. (d) Agency regulations. (1) 7 CFR part 1900. (2) 7 CFR part 1901, subpart E. (3) 7 CFR part 1951. (4) 7 CFR part 1970. (5) 7 CFR part 990. (e) Access to laws and regulations. https://uscode.house.gov/. (2) Regulations may be accessed through the CFR. At the time this subpart was published, the CFR may be accessed electronically at this website: https://www.ecfr.gov/. §§ 4284.909-4284.915 [Reserved] § 4284.916 Reserved funds. (a) The following reserved funds will be made available each Fiscal Year: (1) 10 percent of total program funding to fund Projects that benefit Beginning Farmers or Ranchers or Socially-Disadvantaged Farmers or Ranchers; and (2) 10 percent of total program funding to fund Projects where a majority of the requested grant amount goes to improving Food Safety for the purpose of enhancing market access; and (3) 10 percent of total program funding to fund Projects that propose development of Mid-Tier Value Chains. (b) Reserved funds not obligated by September 30 of each Fiscal Year shall be available to the Secretary in the next Fiscal Year to make grants under this subpart to eligible Applicants in the general funds competition. §§ 4284.917-4284.919 [Reserved] § 4284.920 Eligible Applicants. Applicants are eligible for assistance through this program if all of the following requirements are met: (a) System for Award Management (SAM) registration, General Certifications and Representations and unique entity identifier (UEI). SAM.gov. (b) Legal authority. (c) Applicant type. (1) Agricultural Producer. (i) A Steering Committee must apply as an Agricultural Producer and discuss how it intends to form a program-eligible legal entity prior to execution of the Financial Assistance Agreement by the Agency. (ii) A Harvester must apply as an Agricultural Producer and document its legal right to access and harvest the Agricultural Commodity that will be used for the Value-Added Agricultural Product. (2) Agricultural Producer Group. (3) Farmer or Rancher Cooperative. (4) Majority-Controlled Producer-Based Business Venture. (d) Ownership and control. (2) Applicants who produce the Agricultural Commodity under contract for another entity, but do not own the Agricultural Commodity or Value-Added Agricultural Product produced, are not considered Agricultural Producers. Entities that contract out the production of an Agricultural Commodity are not considered Agricultural Producers. Agricultural Producer entities must confirm their owner members as eligible and must identify them by name or class. (3) The Agency will determine the Agricultural Producer status of Tribes or Tribal entities without regard to ownership of the commodity to which value will be added so long as the Tribal member participant, Tribal entity and/or Tribe own and control more than 50 percent of the Agricultural Commodity necessary for the Project. (e) Emerging Market. (f) Citizenship. (g) Multiple grants. (1) Applicants who have already received a Planning Grant for the Project cannot receive another Planning Grant for the same Project; and (2) Applicants who have already received a Working Capital Grant for the Project cannot receive any additional grants for that Project. (h) Current VAPG award. § 4284.921 Ineligible Applicants. Applicants are ineligible for assistance through this program if one or more of the following has occurred: (a) The Applicant is debarred or suspended or is otherwise excluded from, or ineligible for participation in, Federal assistance programs under Executive Order 12549, “Debarment and Suspension.” (b) An outstanding judgement has been obtained against the Applicant by the United States in a Federal court (other than U.S. Tax Court). (c) The Applicant is delinquent on the payment of Federal income taxes or is delinquent on Federal debt. (d) The Applicant has been convicted of a felony criminal violation under any Federal law within the past 24 months. (e) The Applicant has unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability. (f) The Applicant submits multiple applications from separate entities, owners, and/or owner(s) of the legal entity (regardless of ownership percentage), or from a parent, subsidiary or affiliated organization (with “affiliation” defined by the Small Business Administration regulation 13 CFR 121.103, or successor regulation) during the same grant cycle. This is not applicable to Applicants who are also applying as a member of a Farmer or Rancher Cooperative or an Agricultural Producer Group. § 4284.922 Project eligibility. Eligible Projects must meet all of the following requirements. Failure to meet one or more of these requirements means that the application will not be eligible for funding. (a) Project focus. (b) Project type. (1) Emerging Market Project as defined in § 4284.903. (2) Market Expansion Project as defined in § 4284.903. (3) Food Safety Project as defined in § 4284.903. (c) Product(s). (d) Amount requested. (e) Period of Performance. (f) Matching Funds. (1) Applicant or third-party cash; (2) Applicant loan, or line of credit; (3) Non-Federal grant sources (unless otherwise provided by law); or (4) Applicant, family member, or third-party in-kind contribution. (i) In-kind contributions must be appropriately valued with an adequate explanation of the basis for the valuation ( e.g., (ii) Applicant in-kind contributions may include the value of the Agricultural Commodity inventory to be used in the Project and can be used to satisfy up to 100 percent of the Matching Funds requirement. Third-party in-kind contributions of the Agricultural Commodity inventory to be used in the Project can be used to satisfy up to 49 percent of the Matching Funds requirement. (iii) Applicant in-kind contributions may also include Applicant or family time spent on eligible tasks; however, the valuation cannot exceed 50 percent of the Matching Funds required for the Project. Final valuation for Applicant or family member in-kind contributions is at the discretion of the Agency. § 4284.923 Reserved funds eligibility. Applicants must meet the applicable requirements in this section to compete for reserved funds. (a) Beginning Farmer or Rancher. (b) Socially-Disadvantaged Farmer or Rancher. (c) Food Safety. (d) Mid-Tier Value Chain. (1) Provide documentation demonstrating that the Project meets the definition of Mid-Tier Value Chain; (2) Demonstrate that the Project proposes development of a Local or Regional Supply Network of an interconnected group of entities (including nonprofit organizations, as appropriate) through which Agricultural Commodities and Value-Added Agricultural Products move from production through consumption in a local or regional area of a State, including a description of the network, its component members, either by name or by class, and its purpose. Applicant ownership of the Agricultural Commodity and Value-Added Agricultural Product from raw through value-added stages is not necessarily required; (3) Describe at least two alliances, linkages, or partnerships within the value chain that link Agricultural Producers with businesses, cooperatives, or consumers that market value-added Agricultural Commodities or Value-Added Agricultural Products in a manner that benefits Small- or Medium-Sized Farms and Ranches that are structured as a Family Farm, including the names of the parties and the nature of their collaboration; (4) Demonstrate how the Project, due to the manner in which the Value-Added Agricultural Product is marketed, will increase the profitability and competitiveness of at least two eligible, Small- or Medium-Sized Farms or Ranches that are structured as a Family Farm, including a description of the two Farms or Ranches confirming they meet the Family Farm definition; (5) Document that the eligible Agricultural Producer Group/Farmer or Rancher Cooperative/Majority-Controlled Producer-Based Business Venture Applicant organization has obtained at least one agreement with another member of the supply network that is engaged in the value chain on a marketing strategy; or that the eligible Agricultural Producer Applicant has obtained at least one agreement from an eligible Agricultural Producer Group/Farmer or Rancher Cooperative/Majority-Controlled Producer-Based Business Venture engaged in the value-chain on a marketing strategy; (i) For Planning Grants, agreements may include letters of commitment or intent to partner on marketing, distribution or processing; and should include the names of the parties with a description of the nature of their collaboration. For Working Capital Grants, demonstration of the actual existence of the executed agreements is required; and (ii) Agricultural Producer Applicants must provide documentation to confirm that the non-Applicant Agricultural Producer Group/Farmer or Rancher Cooperative/majority-controlled partnering entity meets program eligibility definitions, except that, in this context, the partnering entity does not need to supply any of the Agricultural Commodity for the Project; (6) Demonstrate that the members of the Applicant organization that are benefiting from the Project currently own and produce more than 50 percent of the Agricultural Commodity that will be used for the Value-Added Agricultural Product that is the subject of the Project; and (7) Demonstrate that the Project will result in an increase in customer base and an increase in revenue returns to the Applicant Producers supplying more than 50 percent of the Agricultural Commodity for the Project. § 4284.924 Priority points eligibility. Applicants that demonstrate eligibility may apply for priority points if their applications: propose Projects that contribute to increasing opportunities for Beginning Farmers or Ranchers, Socially-Disadvantaged Farmers or Ranchers, Veteran Farmers or Ranchers, or operators of Small- or Medium-Sized Farms or Ranches that are structured as a Family Farm or propose Mid-Tier Value Chain Projects; or are a Farmer or Rancher Cooperative. A Harvester is eligible for priority points only if the Harvester is proposing a Mid-Tier Value Chain Project. (a) Applicants seeking priority points as Beginning Farmers or Ranchers or as Socially Disadvantaged Farmers or Ranchers must provide certifications specified in § 4284.923(a) or (b), as applicable. (b) Applicants seeking priority points as Veteran Farmers or Ranchers must provide a self-certification that they meet the definition of a Veteran Farmer or Rancher. (c) Applicants seeking priority points as operators of Small- or Medium-Sized Farms or Ranches that are structured as a Family Farm must provide a self- certification that they meet the definition of a Small- or Medium-Sized Farm or Ranch that is structured as a Family Farm; that the owners meet the definition of Immediate Family and are primarily responsible for the daily physical labor and management of the Farm or Ranch with hired help merely supplementing the family labor. (d) Applicants seeking priority points for Mid-Tier Value Chain Projects must be one of the four eligible Applicant types and provide the documentation specified in § 4284.923(d)(1) through (7), demonstrating that the Project meets the Mid-Tier Value Chain definition. (e) Applicants seeking priority points for a Farmer or Rancher Cooperative must: (1) Demonstrate that it is a business owned and controlled by Agricultural Producers that is legally incorporated as a cooperative; or that it is a business owned and controlled by Agricultural Producers that is not legally incorporated as a cooperative, but is identified by the State in which it operates as a cooperatively operated business; (2) Identify by name or class, and confirm that the Agricultural Producers on whose behalf the value-added work will be done meet the definition requirements for an Agricultural Producer, including that each member is an individual Agricultural Producer, or an entity that is solely owned and controlled by Agricultural Producers, that substantially participates in the production of more than 50 percent of the Agricultural Commodity to which value will be added; and (3) Provide a self-certification statement that the entity is owned and controlled by Agricultural Producers that are incorporated, or otherwise identified by the State in which they operate, as a cooperatively owned business(es); that the owner(s)/member(s) substantially participate in the production of more than 50 percent of the Agricultural Commodity to which value will be added; is in “good standing” as a cooperatively operated business in the State of incorporation or operations, as applicable. (f) Applicants applying as Agricultural Producer Groups, Farmer or Rancher Cooperatives, or Majority-Controlled Producer-Based Business Ventures (group Applicants) may request additional priority points for Projects that “best contribute to creating or increasing marketing opportunities” for operators of Small- and Medium-Sized Farms and Ranches that are structured as Family Farms, Beginning Farmers and Ranchers, Socially-Disadvantaged Farmers and Ranchers, and Veteran Farmers and Ranchers. See § 4284.940(c)(6) for instructions and documentation requirements for group Applicants to apply for these additional priority points. § 4284.925 Allowable uses of grant and Matching Funds. (a) Planning grants. (b) Working capital grants. § 4284.926 Unallowable uses of grant and Matching Funds (a) Unallowable uses of grant and Matching Funds awarded under this subpart include, but are not limited to: (1) Support costs for services or goods going to or coming from a person or entity with a real or apparent conflict of interest, such as paying the salary of an Immediate Family member of a Recipient owner, employee, officer, or Agency, except as specifically noted for in-kind Matching Funds in § 4284.922; (2) Pay costs for scenarios with noncompetitive trade practices; (3) Plan, repair, rehabilitate, acquire, or construct a building or facility (including a processing facility); (4) Purchase, lease purchase, or install fixed Equipment, including processing Equipment, except as specifically noted in § 4284.925(b); (5) Purchase or repair vehicles, including boats; (6) Pay for the preparation of the grant application; (7) Pay expenses not directly related to the funded Project for the processing and marketing of the Value-Added Agricultural Product; (8) Fund research and development; (9) Fund any activities prohibited by 2 CFR parts 200 through 400, and 48 CFR part 31, subpart 31.2; (10) Fund architectural or engineering design work; (11) Fund expenses related to the production of any Agricultural Commodity or product, including, but not limited to production planning, purchase of seed or rootstock or other production inputs, labor for cultivation or harvesting crops, labor for repotting and/or maintenance of live plants, and delivery of Agricultural Commodity to a processing facility; (12) Conduct activities on behalf of anyone other than a specifically identified Agricultural Producer or group of Agricultural Producers, as identified by name or class. The Agency considers conducting industry-level Feasibility Studies or Business Plans, that are also known as Feasibility Study templates or guides or Business Plan templates or guides, to be ineligible because the assistance is not provided to a specific group of Agricultural Producers; (13) Duplicate activities charged to another Federal award or previous VAPG Planning or Working Capital Grant Project by an Applicant; (14) Pay any costs of the Project incurred prior to the date of grant approval, including legal or other expenses needed to incorporate or organize a business; (15) Pay any judgment or debt owed to the United States; (16) Purchase or improve real property; (17) Pay for costs associated with illegal activities; (18) Purchase the Agricultural Commodity to which value will be added from the Applicant entity; Applicant-owned or related entity, or members of the Applicant entity; (19) Use Planning Grant funds to evaluate the agricultural production of the commodity itself, or compensate Applicants or family members for participation in Feasibility Studies; or (20) Indirect Costs. (b) Applications that propose unallowable costs in excess of 10 percent of Project Costs will be deemed ineligible to compete for funds. Applicants who submit applications containing ineligible expenses totaling less than 10 percent of Project Costs must remove those expenses from the Project budget or replace with eligible expenses, if selected for an award. § 4284.927 [Reserved] § 4284.928 Funding limitations. (a) Grant funds may be used to pay up to 50 percent of the Project Costs, subject to the limitations established for the maximum total grant amount. (b) The maximum grant amount provided to a Recipient in any one (1) year shall not exceed the amount announced in an annual notification issued on the program website pursuant to § 4284.930, but in no event may the total amount of grant funds provided to a grant Recipient exceed $500,000. (c) The aggregate amount of awards to Majority-Controlled Producer-Based Business Ventures may not exceed 10 percent of the total funds obligated under this subpart during any Fiscal Year. (d) Not more than 2.5 percent of funds appropriated each year may be used to fund the Agricultural Marketing Resource Center, to support electronic capabilities to provide information regarding research, business, legal, financial, or logistical assistance to Agricultural Producers and processors. § 4284.929 [Reserved] § 4284.930 Notifications. The Agency will issue any public notifications on the program website. (a) Amount of funding available. (b) Administrator/State Director points. (1) Unserved or underserved areas; (2) Geographic diversity; (3) Emergency conditions; or (4) Priority Department and mission area priorities, goals, and objectives. (c) Other. § 4284.931 Application requirements. All applications must include the following items: (a) Application forms. (1) SF-424, “Application for Federal Assistance.” (2) SF-424A, “Budget Information-Non-Construction Programs.” (b) Executive summary. (c) Eligibility discussion. (1) Applicant eligibility requirements in § 4284.920 are met; (2) Project eligibility requirements in § 4284.922 are met; and (3) Allowable use of grant and Matching Funds requirements in § 4284.925 are met. (d) Proposal evaluation criteria. (e) Certification of Matching Funds. (1) Matching Funds will be spent in advance of grant funding, such that for every dollar of grant funds disbursed, not less than an equal amount of Matching Funds will have been expended prior to submitting the request for reimbursement; and (2) If Matching Funds are proposed in an amount exceeding the grant amount, those Matching Funds must be spent at a proportional rate equal to the match-to-grant ratio identified in the budget. (f) Reserved funds/priority points documentation. (g) Business Plan. (h) Feasibility Study. (i) Customer Base and Revenue Increase Metrics. § 4284.932 Simplified application. Applicants that will submit an application where paragraphs (a), (b), and/or (c) of this section apply may submit a simplified application, which means submission of a Feasibility Study or Business Plan for the Project is not required. The waiver of the requirement to submit a Feasibility Study and Business Plan does not change the proposal evaluation or scoring criteria that pertain to issues that might be supported by a Feasibility Study or Business Plan, so Applicants are encouraged to thoroughly document applications with their Project plans and expectations for success. All other eligibility requirements remain the same. (a) Working Capital Grant request of less than $50,000. (b) Market Expansion request of $50,000 or more. (c) Food Safety. § 4284.933 Submission requirements. Unless otherwise specified in a notification issued under § 4284.930, the following requirements apply to all applications. (a) Submission period. (2) The application period closes on February 15. Applications received after the closing date will not be considered for funding. Thus, applicants are encouraged to submit their applications well in advance of the closing date to ensure timely receipt by the Agency. Revisions or additional information will not be accepted after the application period closes on February 15. (b) Submission process. §§ 4284.934-4284.939 [Reserved] § 4284.940 Application processing. (a) Eligibility evaluation. (b) Risk evaluation. (2) The Agency will determine if the Applicant has satisfactory performance for all Federal awards received in the last five (5) years, based upon review of deficiencies reported in the Federal Awardee Performance and Integrity Information System, or its successor system, the Do Not Pay system, or its successor system, and the Agency's own internal financial and record-keeping systems and files. Satisfactory performance includes timely submission of required reports and documents, timely completion of tasks, and proper use of funds. (c) Merit evaluation. (1) Nature of the proposed venture (0 to 30 points). (i) Technological feasibility should include discussion of the value-added process; the Applicant's expectations for sufficient Agricultural Commodity as well as the value to be added to the Agricultural Commodity through the value-added process; potential markets and distribution channels; Applicant's experience in marketing the proposed or similar product; and any other relevant information that supports the feasibility of the Project. (ii) Operational efficiency should include discussion of the cost of inputs; cost of processing commodity; sufficient labor and expertise; use of own facility, shared space, or contracted processing; adequate processing equipment; and logistics for storage, distribution, transportation, and/or shipping of the Value-Added Agricultural Product. Applicants should also address any anticipated challenges or risks associated with the Project. (iii) Profitability and economic sustainability should include discussion of the market expansion strategy and break-even point analysis completed for the Project. Include a summary of historical financial and pro forma financial projections, as applicable, to support the viability of the Project. Other relevant sources such as a Business Plan or Feasibility Study may be cross-referenced. (2) Qualifications of Key Personnel (0 to 20 points). (3) Work plan and budget (0 to 20 points). (i) Present a detailed narrative description of the eligible activities and tasks related to the processing and/or marketing of the Value-Added Agricultural Product along with a detailed breakdown of all estimated costs allocated to those activities and tasks; (ii) Identify the Key Personnel that will be responsible for overseeing and/or completing the activities or tasks and provide reasonable and specific timeframes for completion of the activities and tasks; (iii) Identify the sources and uses of grant and Matching Funds for all activities and tasks specified in the budget; and indicate that Matching Funds will be spent at a rate equal to or in advance of grant funds; and (iv) Identify the basis of the valuation of the grant and Matching Funds for all activities and tasks specified in the budget. (4) Matching Funds commitment (up to 5 points). (5) Prior VAPG assistance (up to 5 points). (6) Priority points (0 to 10 points). (i) 5 priority points will be awarded if the Applicant meets the requirements for one of the following categories and provides the documentation described in §§ 4284.923 and 4284.924, as applicable: Beginning Farmer or Rancher, Socially-Disadvantaged Farmer or Rancher, Veteran Farmer or Rancher, or operator of a Small- or Medium-Sized Farm or Ranch that is structured as a Family Farm, Farmer or Rancher Cooperative, or are proposing a Mid-Tier Value Chain Project. Applicants will not be awarded more than five (5) points even if they qualify for more than one of the priority categories. (ii) 5 additional priority points will be awarded if the Applicant is an Agricultural Producer Group, Farmer or Rancher Cooperative, or Majority-Controlled Producer-Based Business Venture whose Project “best contributes to creating or increasing marketing opportunities” for operators of Small- and Medium-Sized Farms or Ranches that are structured as Family Farms, Beginning Farmers or Ranchers, Socially-Disadvantaged Farmers or Ranchers, or Veteran Farmers or Ranchers. (7) Administrator/State Director priority categories (0 to 10 points). § 4284.941 Application withdrawal. During the period between the submission of the application and award approval, the Applicant must notify the Agency if the Project is no longer viable or the Applicant is no longer requesting financial assistance for the Project. When the Applicant notifies the Agency, the application will be withdrawn from consideration for funding. §§ 4284.942-4284.949 [Reserved] § 4284.950 Award selection. (a) Applications will be selected for further processing and consideration of an award after the merit evaluation process is completed for all eligible applications. Each eligible application will be scored on criteria 1 through 6 as detailed in the annual notification. The scores will be ranked highest to lowest and this will comprise the initial application ranking. Applications will be ranked solely on the points awarded by the reviewers, unless there is a tie. In that case, the Administrator of the Agency (or State Director) will break the tie at his or her discretion based on evaluation criterion 7. (b) Applications for reserved funds will be funded in rank order until funds are depleted. Unfunded reserve applications will then compete for general funds where applications will be funded in rank order until available funds are expended or the minimum score for funding of 50 points is reached. Funding for Majority Controlled Producer-Based Business Ventures is limited to 10 percent of total grant funds expected to be obligated each funding cycle. These applications will be funded in rank order until the funding limitation has been reached. (c) If an application cannot be fully funded, the Agency will offer partial funding to the extent funds are available. If the Applicant offered partial funding does not accept, the Agency will offer the funding to the next highest-ranked Applicant until an Applicant is found that accepts the funding or no additional eligible Applicants exist. If an application is ranked and not funded, it will not be carried forward into the next Fiscal Year competition. § 4284.951 Notification of successful Applicants. (a) The Agency will notify the Applicants whose applications can be funded with a Letter of Conditions. The Letter of Conditions will provide the conditions under which an award can be approved as well as a copy of the term of the award. Applicants receiving a Letter of Conditions will have up to 90 calendar days to meet the conditions of the award. If the Applicant agrees with the conditions, the Applicant must complete an applicable Form RD 1942-46, Letter of Intent to Meet Conditions. If the Applicant believes that certain conditions cannot be met, the Applicant may propose alternate conditions to the Agency. The Agency must concur with any proposed changes to the Letter of Conditions by the Applicant before the application will be processed further. If the Agency agrees to any proposed changes, the Agency will issue a revised or amended Letter of Conditions that defines the final conditions under which the grant will be made. However, if an Applicant does not meet the conditions, the Agency will discontinue processing the application. (b) All successful Applicants must complete the following additional forms and provide the following additional documentation: (1) Form RD 1942-46, “Letter of Intent to Meet Conditions.” (2 Form RD 400-4, “Assurance Agreement.” (3) Form SF-LLL, “Disclosure of Lobbying Activities.” (4) Form RD 4280-2, “Rural Business-Cooperative Service Financial Assistance Agreement.” (5) Performance evaluation criteria. (6) Verification of Matching Funds. (7) Valid permit/license. (8) Organizational documents. § 4284.952 Notification of unsuccessful Applicants. Applicants whose applications are not eligible for financial assistance or did not score high enough to be funded will be notified. The notification will be in writing using an adverse decision letter. This letter will outline the reason(s) for the Agency's decision and provide dispute resolution alternatives. §§ 4284.953-4284.959 [Reserved] § 4284.960 Reporting requirements. Recipients are required to submit financial reports and performance reports on a semiannual basis. Semiannual periods end on March 31st and September 30th. Reports are due 30 calendar days after the end of the semiannual period. A final financial report and performance report must also be submitted within 120 days after the expiration or termination of the grant. Failure to submit a performance report within the specified timeframes may result in the Agency withholding grant funds. (a) Financial reports. (b) Performance reports. (1) For Working Capital Grant Projects, final performance reports must include the following metrics: (i) Expansion of customer base as a result of the Project; (ii) Increased revenue returned to the Producer as a result of the Project; and (iii) Jobs created or saved as a result of the Project. (2) For all Projects, we may request additional information, including but not limited to, the following: (i) Information that will enable evaluation of the economic impact of program awards, such as: (A) Business starts and clients served; and (B) Data associated with Producer market expansion, new market penetration, and changes in customer base or revenues. (ii) Information that would promote greater understanding of the key determinants of the success of individual Projects or inform program administration and evaluation, such as: (A) The Producer's experience related to financial management, budgeting, and running a business enterprise; (B) The nature of, and advantages or disadvantages of, supply chain arrangements or equitable distribution of rewards and responsibilities for Mid-Tier Value Chain Projects; and (C) Recommendations from Beginning Farmers or Ranchers, Socially-Disadvantaged Farmers or Ranchers, and/or Veteran Farmers or Ranchers. (iii) Information that would inform or enable the aggregation of data for program administration or evaluation purposes. (3) If any special conditions have been placed on the use of award funds, compliance with those conditions must be discussed in each performance report. § 4284.961 Grant monitoring. Awards will be monitored by Agency personnel in accordance with applicable laws, regulations, and policies (see § 4284.908 for more information). The Agency may terminate or suspend the award for lack of adequate or timely progress, reporting, documentation, or for failure to comply with Agency requirements. § 4284.962 Transfer of obligations. At the discretion of the Agency and on a case-by-case basis, an obligation of funds established for an Applicant may be transferred to a different (substituted) Applicant provided: (a) The substituted Applicant: (1) Is eligible; (2) Has a close and genuine relationship with the original Applicant; and (3) Has the authority to receive the assistance approved for the original Applicant. (b) The Project continues to meet all product, purpose, and reserved funds eligibility requirements so that the need, purpose(s), and scope of the Project for which the Agency funds will be used remain substantially unchanged. §§ 4284.963-4284.999 [Reserved] § 4284.1000 OMB control number. The reporting and recordkeeping requirements contained in this subpart have been approved by the OMB and have been assigned OMB control number 0570-0064 in accordance with the Paperwork Reduction Act of 1995. Subpart K—Agriculture Innovation Center Demonstration Program Source: 89 FR 75789, Sept. 16, 2024, unless otherwise noted. § 4284.1001 Purpose. This subpart implements the Agriculture Innovation Center Demonstration (AIC) program. Through the AIC program, the Agency makes grants to Centers that provide Producer Services to Agricultural Producers seeking to develop and market Value-Added Agricultural Products. § 4284.1002 Organization of subpart. The information in this subpart is organized into seven main topics: (a) General information. (b) Eligibility information. (c) Application requirements information. (d) Application processing information. (e) Award information. (f) Post-award information. (g) Other. (2) Section 4284.1100 includes the Office of Management and Budget (OMB) control number for reporting and recordkeeping requirements under this subpart. § 4284.1003 Definitions. These are the definitions for terms used in this subpart. Additional terms used in this subpart are found in the applicable laws and regulations, in particular 2 CFR part 200 and 7 CFR part 11. Adverse Decision Adverse Decision Letter Agency Agricultural Commodity Agricultural Commodity Organization Agricultural Food Product Agricultural Producer Applicant Board of Directors Business Plan Center Change in Physical State Commercial Organization Equipment Family Farm Farm or Ranch Farm- or Ranch-Based Renewable Energy Feasibility Study Federal Award Financial Assistance Agreement General Agricultural Organization Harvester Indian Tribe Indirect Costs Institutions of Higher Education Key Personnel Letter of Conditions Local Government Local Agricultural Producer Locally-Produced Agricultural Food Product Matching Funds Nonprofit Organization Period of Performance Physical Segregation Produced in a Manner That Enhances the Value of the Agricultural Commodity Producer Services (1) Business development services, such as Feasibility Studies, Business Plans, and other types of technical assistance that supports business development. (2) Market development services, such as marketing plans, branding, and customer identification. (3) Organizational assistance, such as legal and technical advisory services related to the development, expansion, or operation of a business. (4) Financial advisory services related to the development, expansion, or operation of a business, such as assistance with obtaining credit for operating costs, training on using financial management software, and guidance on use of cash flow. (5) Process development services, such as the following: (i) Engineering services, including scale-up of production systems (not to include cost of renovating or constructing a facility or system); (ii) Scale production assessments, which are studies that analyze processing facilities to determine the size that optimizes construction and other cost efficiencies associated with manufacturing or processing a Value-Added Agricultural Product; (iii) Systems development; and (iv) Other technical assistance and applied research related to development, implementation, improvement and operations of processes and systems to develop and market a Value-Added Agricultural Product. (6) Product development, such as idea generation, concept testing, feasibility and cost analysis, product taste-testing, demographic and other types of consumer analysis, production analysis, recipe development, evaluation of packaging and labeling options, and brand development for a Value-Added Agricultural Product. (7) Value chain coordination, or directly working with an Agricultural Producer to connect that producer to a distribution system, processing facility, or commercial kitchen. (8) Grants to Agricultural Producers for the services in paragraphs (1) through (7) of this definition, where the individual award does not exceed $5,000 and the aggregate amount of grants made by the Center does not exceed $50,000. Note that these grants are considered pass-through awards. Therefore, Centers and subrecipients must comply with all Federal and programmatic requirements for pass-through entities and awards, as described in 2 CFR part 200. Additionally, subrecipients of these grants must be eligible to receive a Federal Award, use grant and Matching Funds for allowable costs, provide at least one-third of the Project Cost in Matching Funds, and meet all other Federal and program requirements for the AIC program. Program Income Project Cost Qualified Board of Directors (1) Two General Agricultural Organizations with the greatest number of members in the State in which the Center is located; (2) The department of agriculture, or similar State department or agency, or a State legislator, of the State in which the Center is located; and (3) Four Agricultural Commodity Organizations representing different Agricultural Commodities produced in the State in which the Center is located. Real Property Recipient State State Office Third-Party In-Kind Contributions Underserved and Economically Distressed Area Value-Added Agricultural Product § 4284.1004 Exception authority. The Administrator of the Agency may, on a case-by-case basis, approve an exception to any requirement or provision of this subpart provided that such an exception is in the best financial interests of the Federal Government. Exercise of this authority cannot conflict with applicable laws. § 4284.1005 [Reserved] § 4284.1006 Conflict of interest. No conflict of interest or appearance of a conflict of interest will be allowed. (a) Description. (1) Parent, Applicant, or Recipient Board of Directors, employees, consultants, and contractors. (2) Center Board of Directors, employees, consultants, and contractors. (3) Subrecipients and their employees, consultants, and contractors. (4) Immediate family members of those listed in paragraphs (a)(1) through (3) of this section. (b) State Departments of Agriculture. (c) Written disclosure. (d) Assistance to employees, relatives, and associates. (e) Member/delegate clause. § 4284.1007 [Reserved] § 4284.1008 Compliance with other laws and regulations. The Agency, Applicants, and Recipients must comply with all applicable laws and regulations. An effort has been made to identify the most-commonly cited laws and regulations and reference them as follows: (a) Federal laws. (1) Equal Credit Opportunity Act (15 U.S.C. 1691 et seq. (2) Consumer Credit Protection Act (15 U.S.C. 1601 et seq. (3) Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq. (4) The Civil Rights Act of 1964, Title VI (42 U.S.C. 2000d et seq. (5) The Rehabilitation Act of 1973, Section 504 (29 U.S.C. 794). (b) Federal regulations. (c) Departmental regulations. (1) 2 CFR parts 400 through 499. (2) 7 CFR part 11. (3) 7 CFR part 15. (d) Agency regulations. (1) 7 CFR part 1900. (2) 7 CFR part 1901, subpart E. (3) 7 CFR part 1951. (4) 7 CFR part 1970. (e) Access to laws and regulations. https://uscode.house.gov/. (2) Regulations may be accessed through the CFR. At the time this subpart was published, the CFR may be accessed electronically at this website: https://www.ecfr.gov/. §§ 4284.1009-4284.1019 [Reserved] Eligibility Information § 4284.1020 Applicant eligibility. Applicants must meet certain requirements to be eligible for funding through this program. Those requirements are described as follows: (a) Eligible entities. (1) System for Award Management (SAM) registration and unique entity identifier (UEI). SAM.gov. (2) Entity type. (3) Board of Directors. (4) Experience/capability to provide services. (5) Financial capability. (i) The most recent independent audit confirms that the entity has a current ratio of at least 1:1 at the end of the fiscal year; and (ii) The most recent independent audit confirms that the entity has sufficient cash on hand at the end of the fiscal year to cover at least three months of expenses for the proposed project. (b) Ineligible entities. (1) An outstanding judgment has been obtained against the entity by the United States in a Federal Court (other than in the United States Tax Court). The entity is ineligible for assistance until the judgment is paid in full or otherwise satisfied. Funds from this program may not be used to satisfy the judgment. (2) The entity is delinquent on the payment of Federal income taxes. (3) The entity is delinquent on Federal debt. (4) The entity is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549, “Debarment and Suspension.” (See 2 CFR part 417 for more information.) (5) The entity has been convicted of a felony criminal violation under any Federal law within the past 24 months. (6) The entity has any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability, unless a Federal agency has considered suspension or debarment of the organization and has made a determination that this further action is not necessary to protect the interests of the Government. (7) The entity is an individual. (8) The entity has an award through this program that is not scheduled to end until after September 30 of the year in which the application is submitted. § 4284.1021 Ultimate beneficiary eligibility. Centers must provide Producer Services only to Agricultural Producers. The Agricultural Producers may purchase or intend to purchase up to 49 percent of the primary Agricultural Commodity needed for the Value-Added Agricultural Product that is being developed and/or marketed. Note that the primary Agricultural Commodity is considered the commodity for which the greatest volume is required to produce the Value-Added Agricultural Product. The Agricultural Producers must maintain ownership of the primary Agricultural Commodity from production through the sale of the Value-Added Agricultural Product. See § 4284.1003 for the definitions of Agricultural Commodity, Agricultural Producer, and Value-Added Agricultural Product. § 4284.1022 Project eligibility. Projects must meet certain requirements to be eligible for funding through this program. Those requirements are as follows: (a) Eligible projects. (1) Project purpose. (2) Amount requested. (3) Matching Funds. (4) Allowable use of funds. (5) Agricultural support. (6) Period of Performance. (7) Contracts with other Centers. (b) Ineligible projects. (1) Includes a conflict of interest (see § 4284.1006 for more information), where the expenses associated with the conflict of interest exceed 10 percent of the Project Cost. If the costs associated with the conflict of interest are 10 percent or less, the process in paragraph (b)(5) of this section will be followed. (2) Requests less than the minimum or more than the maximum grant amount. (3) Focuses assistance on only one Agricultural Producer or business. (4) Earns revenue from processing or selling a product as part of the project. Centers may charge fees for services provided, but they cannot earn revenue from processing a product or from sales associated with a product they helped develop. (5) Includes unallowable costs totaling more than 10 percent of Project Costs. If the application includes 10 percent or less of Project Costs in unallowable costs, and the application is otherwise eligible and selected for funding, those unallowable costs must be removed. If time permits, the Agency may allow those unallowable costs to be replaced with allowable costs. Otherwise, the amount of the Award will be reduced accordingly. If we cannot determine the percentage of unallowable costs, your application will not be considered for funding. §§ 4284.1023-4284.1024 [Reserved] § 4284.1025 Use of funds. Allowable and unallowable uses of funds are described as follows: (a) Allowable uses of funds. (1) Producer Services as defined in § 4284.1003. (2) Costs associated with establishing and operating a Center, including legal services, accounting services, clerical assistance, technical services, office supplies, hiring employees, monitoring contracts, professional development for staff, attending conferences related to value-added agriculture and marketing food products, and Board of Directors travel. (3) Additional information on allowability of costs can be found at 2 CFR part 200, subpart E, for all organization types. (b) Unallowable uses of funds. (1) Provide services to entities other than Agricultural Producers. (2) Fund manufacturing or processing expenses, including test, trial, or initial production runs. (3) Pay for interns or internships. (4) Provide tuition remission or other financial support to students at any level of education. (5) Provide participant support costs outside of the grants to Agricultural Producers. (6) Fund any direct expenses for the production of any Agricultural Commodity or product to which value will be added, including seed, rootstock, labor for harvesting the crop, and delivery of the commodity to a processing facility; to include the purchase of an Agricultural Commodity. (7) Plan, fund architectural work, repair, rehabilitate, acquire, or construct a building or facility, including a processing facility. (8) Purchase Real Property. (9) Purchase, rent, or install Equipment. (10) Purchase or repair vehicles, including boats. (11) Pay for the preparation of the grant application. (12) Pay expenses not directly related to the funded project. (13) Pay for any goods or services from a person or entity who has a conflict of interest with the Recipient (see § 4284.1006). (14) Duplicate activities paid for by another Federal grant program. (15) Pay costs of the project incurred prior to the date of award approval, unless authorized by the Agency at the time of award approval. (16) Pay for assistance to any private business enterprise that does not have at least 51 percent ownership by those who are either citizens of the United States or reside in the United States after being legally admitted for permanent residence. (17) Pay any judgment or debt owed to the United States. (18) Fund any activities considered unallowable by the applicable cost principles, most of which are included in 2 CFR part 200, subpart E. §§ 4284.1026-4284.1029 [Reserved] § 4284.1030 Notifications. The Agency will issue any program notifications identified in paragraphs (a) through (c) of this section on the program website. An annual notification will also be published on the OMB-designated governmentwide website. (a) Amount of funding available. (b) Priority points. (c) Other. Application Requirements § 4284.1031 Application requirements. All applications must include the following items: (a) Form SF-424, “Application for Federal Assistance.” (b) Form RD 4284-1, “Application for the Agriculture Innovation Center Program.” § 4284.1032 [Reserved] § 4284.1033 Submission requirements. The following information identifies when applications can be submitted, where applications must be submitted, and the format of applications. (a) Submission period. (2) The application period closes at 11:59 p.m. Eastern time (ET) on January 31 of the following year. Applications received after the closing date will not be considered. This means that if the application is emailed prior to 11:59 p.m. ET on the closing date, but the Agency's system does not receive it until after the deadline, the application will not be considered for funding. Thus, applicants are encouraged to submit their applications well in advance of the closing date to ensure timely receipt by the Agency. (b) Submission address. (c) Submission format. §§ 4284.1034-4284.1039 [Reserved] Application Processing § 4284.1040 Application processing. The following information describes the way the Agency will process applications, including evaluating eligibility, risk, and merit. (a) Eligibility evaluation. (b) Risk evaluation. (1) Financial risk. (2) Satisfactory past performance. (c) Merit evaluation. (1) Federal Award management (0 to 10 points). USASpending.gov, (i) Amount (0 to 3 points). (ii) Time period (0 to 3 points). (iii) Provision of technical assistance (0 to 4 points). (2) Qualifications of Key Personnel (0 to 20 points). (i) Zero Key Personnel (0 points). (ii) One Key Personnel (0 to 5 points). (iii) Second Key Personnel (0 to 5 points). (iv) Third Key Personnel (0 to 5 points). (v) Fourth Key Personnel (0 to 5 points). (3) Outreach plan (0 to 20 points). (i) Goals (0 to 6 points). (ii) Identified need (0 to 8 points). (iii) Customer identification (0 to 6 points). (4) Coordination, collaboration, and partnerships (0 to 20 points). (i) Coordination, collaboration, or partnership with one other organization (0 to 4 points). (ii) Coordination, collaboration, or partnership with a second organization (0 to 4 points). (iii) Coordination, collaboration, or partnership with a third organization (0 to 4 points). (iv) Coordination, collaboration, or partnership with a fourth organization (0 to 4 points). (v) Underserved and Economically Distressed Area (0 to 4 points). (5) Scope of the project (0 to 20 points). (i) Service area (0 to 4 points). (A) Few counties (0 points). (B) Some counties (1 point). (C) Many counties (2 points). (D) Majority of State (3 points). (E) State-wide (4 points). (ii) Types of services (0 to 8 points). (A) Financial advisory services. (B) Organizational assistance. (C) Value chain coordination. (D) Process development. (E) Product development. (F) Business development services. (G) Marketing assistance. (H) Grants to Agricultural Producers. (iii) Number of commodities (0 to 3 points). (iv) Unique services (0 to 3 points). (v) Physical location (0 to 2 points). (d) Priority Points (0 to 10 points). § 4284.1041 Application withdrawal. During the period between the submission of the application and award approval, the Applicant must notify the Agency in writing if the project is no longer viable or if the Applicant is no longer requesting financial assistance for the project. When the Applicant notifies the Agency, the application will be withdrawn from consideration for funding. §§ 4284.1042-4284.1049 [Reserved] Award § 4284.1050 Award selection. (a) The Agency will review applications to determine if they are eligible for assistance based on requirements in this subpart, and other applicable Federal laws and regulations. If the Agency determines that your application meets the requirements, it will be scored by a panel of USDA employees in accordance with the merit evaluation criteria and point allocation specified in § 4284.1040(c). The review panel will convene to reach a consensus on the scores for each of the eligible applications. Applications will be ranked solely based on the points awarded, and they will be funded in rank order until available funds are expended or a minimum score of 40 points is reached. If an application cannot be fully funded, the Agency may offer partial funding to the extent funds are available. (b) If an application is ranked and not funded, it will not be carried forward into the next funding competition. § 4284.1051 Notification of successful Applicants. (a) The Agency will notify the Applicants whose applications can be funded using available funds with a Letter of Conditions. The Letter of Conditions will provide the conditions under which an award can be approved as well as a copy of the terms of the award. (b) An Applicant receiving a Letter of Conditions will have 60 calendar days to meet the conditions of the award. If the applicant does not meet the conditions, the Agency will discontinue processing the application and offer funding to another Applicant based on the ranking from the merit review panel if sufficient time exists for the application to be fully processed and an award approved by September 30 of the current fiscal year. If sufficient time does not exist, the funds will not be awarded. (c) To view the standard conditions for all awards, please visit the program website. § 4284.1052 Notification of unsuccessful applicants. Applicants whose applications are not eligible for financial assistance or did not score high enough to be funded will be notified as soon as it is practicable. The notification will be in writing using an Adverse Decision Letter. This letter will outline the reason(s) for the Agency's decision and what dispute resolution alternatives the Applicant has. (See also 7 CFR part 11.) § 4284.1053 Award approval. The Agency will approve an award once the Applicant has met all the conditions of the award. The approval will be conveyed through the execution of Form RD 4280-2, which is the Financial Assistance Agreement, and provides all terms of the award. Once the award has been approved, the Recipient may begin work on the project and incur costs. §§ 4284.1054-4284.1059 [Reserved] Post-Award § 4284.1060 Reporting requirements. Recipients are required to submit financial reports and performance reports based on the following requirements. (a) Financial reports. (1) Semi-annual report. (2) Final report. (b) Performance reports. (1) Semi-annual reports. (2) Final report. § 4284.1061 Monitoring awards. Awards will be monitored by Agency personnel in accordance with applicable laws, regulations, and policies (see § 4284.1008 for more information). The Agency will designate a contact person for each award. The Agency may terminate or suspend the award for lack of adequate or timely progress, reporting, documentation, or for failure to comply with Agency requirements. Other § 4284.1062-4284.1099 [Reserved] § 4284.1100 OMB control number. The reporting and recordkeeping requirements contained in this subpart have been approved by OMB and have been assigned OMB control number 0570-0045 in accordance with the Paperwork Reduction Act of 1995. Subpart L—Rural Innovation Stronger Economy (RISE) Grant Program Source: 86 FR 31589, June 15, 2021, unless otherwise noted. § 4284.1101 Purpose. This subpart contains the procedures and requirements for providing the following financial assistance under the Rural Innovation Stronger Economy (RISE) program: (a) Grants for the purpose of constructing, purchasing, or equipping a building to serve as an innovation center in order to establish job accelerators. (b) Grants for the purpose of establishing and supporting job accelerators and related programs. § 4284.1102 Organization of subpart. This subpart is organized into distinct sections as described in paragraphs (a) and (b) of this section. (a) Sections 4284.1103 through 4284.1111 discuss definitions; exception authority; review or appeal rights; conflict of interest; USDA departmental regulations; other applicable laws; ineligible applicants; general applicant, application, and funding provisions; and notifications, which are applicable to funding the program under this subpart. (b) Sections 4284.1112 and 4284.1113 discuss, respectively, applicant and project eligibility. Section 4284.1114 addresses funding provisions for these grants. Sections 4284.1115 through 4284.1120 address grant application content and required documentation, scoring, selection, awarding and administering grant applications, and servicing of grant awards. § 4284.1103 Definitions. The following definitions are applicable to the terms used in this subpart. Administrator Agency Applicant Broadband service. et seq. et seq. Complete application Departmental regulations District organization Eligible project costs Federal fiscal year (FY) Financial assistance agreement High-wage job Indian tribe Industry cluster Innovation center Institution of higher education Instrumentality Jobs accelerator Lead applicant Letter of conditions Low income community Matching funds Person Region Rural and rural area Rural in character (1) A determination that an area is “rural in character” will be made by the Under Secretary of Rural Development in compliance with 7 U.S.C. 1991(a)(13)(D). The process to request a determination under this provision is outlined in this definition. Units of local government may petition the Under Secretary of Rural Development for a “rural in character” designation by submitting a petition to the Administrator on behalf of the Under Secretary. The petition shall document why the petitioner believes the area is “rural in character” including, but not limited to, the area's population density, demographics, and topography and how the local economy is tied to a rural economic base. Upon receiving a petition, the Administrator will review its merits and consult with the applicable governor or leader in a similar position and request comments to be submitted within 5 business days, unless such comments were submitted with the petition. The petition will be forwarded to the Under Secretary who will release to the public a notice of a petition filed by a unit of local government not later than 30 days after receipt of the petition by way of publication in a local newspaper and posting on the Agency's website. The Under Secretary will make a determination not less than 15 days, but no more than 60 days, after the release of the notice. Upon a negative determination, the Under Secretary will provide to the petitioner an opportunity to appeal a determination to the Under Secretary, and the petitioner will have 10 business days to appeal the determination and provide further information for consideration. The Under Secretary will make a determination of the appeal in not less than 15 days, but no more than 30 days. (2) Rural Development State Directors may also initiate a request to the Under Secretary to determine if an area is “rural in character.” A written recommendation should be sent to the Administrator, on behalf of the Under Secretary, that documents how the area meets the statutory requirements and discusses why the State Director believes the area is “rural in character” including, but not limited to, the area's population density, demographics, topography, and how the local economy is tied to a rural economic base. Upon receipt of such a request, the Administrator will review the request for compliance with the “rural in character” provisions and make a recommendation to the Under Secretary. Provided a favorable determination is made, the Under Secretary will consult with the applicable governor or leader in a similar position and request comments within 10 business days, unless gubernatorial comments were submitted with the request. A public notice will be published by the State Office in a local newspaper and the request will be posted on the Agency's website. There is no appeal process for requests made on the initiative of the State Director. Rural jobs accelerator partnership Secretary Small and disadvantaged business Small business (1) An entity that meets Small Business Administration (SBA) size standards in accordance with 13 CFR part 121 and criteria of 13 CFR 121.301 as applicable to financial assistance programs, including paragraph (i) or (ii) of this definition. The size of the concern alone and the size of the concern combined with other entity(ies) it controls or entity(ies) it is controlled by, must not exceed the size standard thresholds designated for the industry in which the concern alone or the concern and its controlling entity(ies), whichever is higher, is primarily engaged. (2) To be considered a small business, either of the following conditions must be met: (i) The concern's tangible net worth is not in excess of $15 million and average net income (excluding carry-over losses) for the preceding two completed fiscal years is not in excess of $5.0 million; or (ii) The size of the concern does not exceed the SBA size standard thresholds designated for the industry in which it is primarily engaged, as measured by number of employees or annual receipts. Industry size standard designations to be utilized are listed in the SBA's table of size standards found in 13 CFR 121.201. Number of employees and annuals receipts are calculated as follows: (A) Number of employees is calculated as the average number of all individuals employed by a concern on a full-time, part-time, or other basis, based upon numbers of employees for each of the pay periods for the preceding completed 12 calendar months. If a concern has not been in business for 12 months, the average number of employees is used for each of the pay periods during which it has been in business. (B) Annual receipts are calculated as average total income plus cost of goods sold for the five most recent years. If a concern has been in operation for less than 60 months, average annual receipts for as long as the concern has been in operation are used. State Total project costs § 4284.1104 Exception authority. The Administrator may, on a case-by-case basis, grant an exception to any requirement or provision of this subpart provided that such an exception is in the best financial interests of the Federal government. Exercise of this authority cannot conflict with applicable law. § 4284.1105 Review or appeal rights. Agency decisions that are adverse to the individual participant are appealable, while matters of general applicability are not subject to appeal; however, such decisions are reviewable for appealability by the National Appeals Division (NAD). All appeals will be conducted by NAD and will be handled in accordance with 7 CFR part 11. § 4284.1106 Conflict of interest. (a) General. (b) Assistance to employees, relatives, and associates. (c) Member/Delegate clause. § 4284.1107 Statute and regulation references. All references to statutes and regulations are to include any and all successor statutes and regulations. § 4284.1108 U.S. Department of Agriculture departmental regulations and laws that contain other compliance requirements. (a) Departmental regulations. (b) Equal opportunity and nondiscrimination. et seq. et seq. (c) Civil rights compliance. et seq., et seq., (1) Initial compliance reviews will be conducted by the Agency prior to funds being obligated. (2) Grants will require one subsequent compliance review following project completion. This will occur after the last disbursement of grant funds has been made. (d) Environmental analysis. (1) Any required environmental review must be completed by the Agency prior to the Agency obligating any funds or the applicant taking any action; (2) A site visit by the Agency may be scheduled, if necessary, to determine the scope of the review. An environmental review may include the publication of public notices, and consultation with State and Tribal Historic Preservation Offices and the U.S. Fish and Wildlife Service. (e) Discrimination complaints Who may file. (2) Time for filing. (3) Filing a complaint. https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint (i) Mail: (ii) Fax: (iii) Email: [email protected]. § 4284.1109 Ineligible applicants. Applicants will be ineligible to receive funds under this subpart as discussed in paragraphs (a) and (b) of this section. (a) If the applicant has an outstanding judgment obtained by the U.S. in a Federal Court (other than in the United States Tax Court), is delinquent in the payment of Federal income taxes, or is delinquent on a Federal debt, the applicant is not eligible to receive a grant until the judgment is paid in full or otherwise satisfied or the delinquency is resolved. The Agency will check the Do Not Pay System to verify this information. (b) If the applicant is debarred or suspended from receiving Federal assistance, the applicant is not eligible to receive a grant under this subpart. The Agency will check the System for Award Management (SAM) to determine if the applicant has been debarred or suspended. § 4284.1110 General applicant, application, and funding provisions. (a) Satisfactory progress. (b) Application submittal. Federal Register (c) Limit on number of applications. Federal Register (d) Application modification. (e) Incomplete applications. (f) Application withdrawal. (g) Time limit on use of grant funds. (1) Time extensions. (2) Return of funds to the Agency. § 4284.1111 Notifications. (a) Eligibility. (b) Funding determinations. § 4284.1112 Rural jobs accelerator partnership eligibility. A rural jobs accelerator partnership (Partnership) organizes key community and regional stakeholders into a working group that focuses on the shared goals and needs of the targeted industry cluster(s). To be eligible for a RISE grant under this subpart, the Partnership must be formed on or after December 20, 2018, and meet each of the criteria specified in paragraphs (a) through (d) of this section. The Agency will determine a Partnership's eligibility based on the criteria herein. (a) The Partnership must include one or more representatives of the following: (1) A State, Tribal or local government; (2) A State, Tribal, or local government entity; (3) A land-grant college or university or other institution of higher education, as defined in the Higher Education Act of 1965 (20 U.S.C. 1001); (4) A rural non-profit cooperative; or (5) A private entity, which may include a business in an industry cluster, economic development or community development organization, financial institution including a community development financial institution, philanthropic organization or labor organization. (b) The Partnership must have a lead applicant represented by one of the following: (1) A district organization; (2) An Indian Tribe or a political subdivision of a Tribe, including a special purpose unit of a tribal government engaged in economic development activities, or a consortium of Indian Tribes; (3) A State or a political subdivision of a State, including a special purpose unit of a State or local government engaged in economic development activities, or a consortium of political subdivisions; (4) An institution of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)) or a consortium of institutions of higher education; or (5) A public or private nonprofit organization. (c) The Partnership and its project must serve a rural region, as defined. (d) The Partnership must clearly define the region that the partnership represents and ensure that the Region encompasses each of the following: (1) Is large enough to contain critical elements of the industry cluster prioritized by the partnership; (2) Is small enough to enable close collaboration among members of the partnership; (3) Includes a majority of communities that are located in the following: (i) A nonmetropolitan area that qualifies as a low-income community; and (ii) An area that has access to or has a plan to achieve broadband service, as defined; and (4) Has a population of 50,000 or fewer inhabitants or, for a region with a population of more than 50,000 inhabitants, is comprised of rural areas and urbanized areas, if any, are the subject of a positive determination by the Under Secretary for Rural Development with respect to a rural-in-character petition, including such a petition submitted concurrently with the application of the partnership for a grant under this section. (e) One or more members of the Partnership must be located in the targeted region. The Partnership may consist of industry entities and other partners outside of the targeted region. § 4284.1113 Project eligibility. For a project to be eligible to receive a RISE grant under this subpart, the proposed project must meet the requirements specified in paragraphs (a) through (e) of this section. The applicant project outcome must accelerate the formation of new businesses with high-growth potential, improve the ability of rural businesses and distressed rural communities to create high-wage jobs, and strengthen rural regional economies by engaging in one or more of the following eligible uses: (a) The construction or purchase of a building to serve as an innovation center located in a rural low-income community which establishes and/or supports a jobs accelerator and any equipment needs of the innovation center to support the jobs accelerator; (b) Be for the support of programs to be carried out at or in direct partnership with the jobs accelerator or in support of jobs accelerator initiatives including one or more of the following: (1) Linking rural communities and entrepreneurs to markets, networks, industry clusters, and other regional opportunities to support high-wage job creation, new business formation, business expansion, and economic growth of rural communities; (2) Integrating rural small businesses into a supply chain; (3) Creating or expanding commercialization activities for new business formation in rural areas; (4) Identifying and building assets in rural communities that are crucial to supporting regional economies; (5) Facilitating the repatriations of high-wage jobs to the United States; (6) Supporting the deployment of innovative processes, technologies, and products; (7) Enhancing the capacity of rural small businesses in regional industry clusters, including small and disadvantaged businesses; (8) Increasing United States exports and business interaction with international buyers and suppliers; (9) Developing the skills and expertise of local workforces, entrepreneurs, and institutional partners in the region to meet the needs of employers and prepare workers for high-wage jobs in the identified industry clusters, including the upskilling of incumbent workers; (10) Ensuring rural communities have the capacity and ability to carry out projects relating to housing, community facilities, infrastructure, or community and economic development to support regional industry cluster growth; (11) Any activities that the Agency may determine to be appropriate, as specified in a Federal Register (c) Not more than 10 percent of a RISE grant awarded under this section shall be used for indirect costs of the applicant associated with administering the RISE grant. The Agency may increase this percentage as a documented exception on a case by case basis. (d) The innovation center may be physically located in a rural area as defined in § 4284.1103 or in a non-rural area; as long as assistance being provided is to residents located in a rural area. The innovation center must be located in a rural low-income community if grant funds are used for the construction or purchase of an innovation center. (e) The applicant is cautioned against taking any actions or incurring any obligations prior to the Agency completing the environmental review that would either limit the range of alternatives to be considered or that would have an adverse effect on the environment, such as the initiation of construction. If the applicant takes any such actions or incurs any such obligations, it could result in project ineligibility. Projects involving the construction of an innovation center as an eligible purpose are subject to the environmental requirements of 7 CFR part 1970. § 4284.1114 RISE grant funding. (a) Grant amounts. (1) Minimum request. Federal Register (2) Maximum request. Federal Register (b) Matching funds. (c) Eligible project costs. (1) Costs directly related to the purchase or construction of an innovation center; (2) Costs directly related to operations of an innovation center including purchase of equipment, office supplies, and administrative costs including salaries directly related to the project; (3) Costs directly associated with support programs to be carried out at or in direct partnership with job accelerators; (4) Reasonable and customary travel expenses directly related to job accelerators and at rates in compliance with 2 CFR 200.474; (5) Utility costs, operating expenses of the innovation center and job accelerator programs and associated programs; (6) Administrative costs of the grantee will not exceed 10% of the grant amount for the duration of the project. (d) Ineligible project costs. (1) Costs associated with preparation of an application package under this notice; (2) Costs incurred prior to Agency receipt of a complete application for the grant request made under a funding notice; (3) Funding of any political or lobbying activities; (4) Payment for assistance to any private business enterprise which does not create and/or support jobs in a rural area of the United States; (5) Payment of any judgment or debt owed to the United States; (6) Duplicate current services or substitute support previously provided. If the current service is inadequate, however, grant funds may be used to expand the level of effort or services beyond what is currently being provided; (7) To fund a part of a project that is dependent on other funding unless there is a firm commitment of the other funding to ensure completion of the project; (8) Pass through grants; and (9) costs associated with hemp production, unless a hemp producer has a valid license issued from an approved State, Tribal or Federal plan as per Section 10113 of the Agriculture Improvement Act of 2018, Public Law 115-334 (verification of valid hemp licenses will occur at the time of award). § 4284.1115 RISE grant applications—content. (a) A potential applicant for RISE may submit a concept proposal not less than 60 days in advance of the application submittal deadline as published in the Federal Register (1) Partnership information including the members and structure of the Partnership, the date formalized, and the governance or leadership board. The information will identify the lead applicant and each partner's ties to the region, their roles in the delivery of the RISE program and any history of previous collaboration between partners. The amount and source of anticipated matching funds will also be provided. (2) Describe the geographic region to be served including the total population, economic characteristics of the region such as unemployment rates and income levels. Industry sectors, their status, size and economic contribution to the region and all communities including metropolitan statistical areas and nonmetro low income communities within the region should be identified. The availability and planned enhancements of broadband service and other assets of the region should also be identified. If the region to be served has a population of more than 50,000 inhabitants, the applicant must document why they believe the area is “rural in character” including, but not limited to, the area's population density, demographics, and topography and how the local economy is tied to a rural economic base. (3) Identify the industry cluster(s) that will be prioritized by the Partnership with information on the firms and support industries in those clusters. Describe the status of the industry (as emerging, existing, or declining) any existing interconnection and networks within the industry cluster and describe participation and scale of small and disadvantaged businesses within the industry cluster. Describe the opportunities or potential of industry growth in the region and competitive advantages of the region and industry cluster should be highlighted along with opportunities within the industry for the creation of or upgrading to high-wage jobs. (4) An executive summary, project plan and scope of work must be provided with the applicant's strategy, activities, budget, goals and objectives for the use of RISE funds. The applicant should also provide information on the sustainability of the partnership and jobs accelerator at the conclusion of the RISE grant period. (b) Unless otherwise specified in a Federal Register (1) The lead applicant must be registered in the System for Award Management (SAM) and is responsible for submitting a complete application as specified in (b)(2)(i) through (b)(2)(xiv) of this section. (2) There are no specific limitations on the number of pages or other formatting requirements of an application. Applicants, who submitted a concept proposal to the Agency, will not need to resubmit the information found in (b)(2)(ix) below. The Agency will review and retain this information for application submittal. A complete application will consist of the following components unless otherwise specified in a Federal Register (i) Form SF-424, “Application for Federal Assistance;” (ii) Form SF-424A, “Budget Information—Non-Construction Programs,” if applicable; (iii) Form SF-424C, “Budget Information—Construction Programs,” if applicable; (iv) Form SF-424D, “Assurances—Construction Programs,” if applicable; (v) RD Form 400-1, “Equal Opportunity Agreement,” for construction projects only; (vi) Identify the ethnicity, race, and gender characteristics of the lead applicant's leadership. This information is optional and is not a required component for a complete application; (vii) Certification that the lead applicant is a legal entity in good standing (as applicable) and operating in accordance with the laws of the State(s) or Tribe where the applicant exists; (viii) The lead applicant must identify whether or not the lead applicant has a known relationship or association with an Agency employee and, if there is a known relationship, the lead applicant must identify each Agency employee with whom the lead applicant has a known relationship; (ix) All items required in paragraph (a) of this section must be provided with the application (applicants must provide updates, as appropriate, to any items previously submitted as a concept proposal under paragraph (a)); (x) Readiness demonstration, which shall be comprised of the following items: (A) Description of readiness of all partners of the Partnership to contribute to the project including their ability to coordinate activities, finances and outcomes of the project. (B) Evidence of a formal agreement among partners of the Partnership for delivery of the RISE program. (C) Evidence of demonstrated readiness in administering the RISE grant, if awarded, including demonstration of potential success in establishment of a jobs accelerator project, which targets an industry cluster and the initiatives of the RISE grant. The application should indicate when activities related to the expected outcomes will commence. (D) Description of how the project will be marketed in the region and how the Partnership will capture any program impacts and success stories; and (E) Timeline describing the proposed tasks to be accomplished and the schedule for implementation of each task. (xi) Provide documentation on how the RISE project will impact the initiatives below, as applicable, including a brief description of how and when the initiative will be delivered: (A) Linking rural communities and entrepreneurs to markets, networks, industry clusters, and other regional opportunities to support high-wage job creation, new business formation, business expansion, and economic growth; (B) Integrating small businesses into a supply chain; (C) Creating or expanding commercialization activities for new business formation; (D) Identifying and building assets in rural communities that are crucial to supporting regional economies; (E) Facilitating the repatriation of high-wage jobs to the United States; (F) Supporting the deployment of innovative processes, technologies, and products; (G) Enhancing the capacity of small businesses in regional industry clusters, including small and disadvantaged businesses; (H) Increasing United States exports and business interaction with international buyers and suppliers; (I) Developing the skills and expertise of local workforces, entrepreneurs, and institutional partners to meet the needs of employers and prepare workers for high-wage jobs in the identified industry clusters, including the upskilling of incumbent workers; (J) Ensuring rural communities have the capacity and ability to carry out projects related to housing, community facilities, infrastructure, or community and economic development to support regional industry cluster growth; (xii) Potential to produce high-wage jobs and benefit rural small and disadvantaged businesses, including a description of the following: (A) Describe how the project will develop the skills and expertise of the local workforce, entrepreneurs and institutional partners to meet the needs of employers and prepare high-wage jobs in the targeted industry cluster(s), which may also include the upskilling of incumbent worker; (B) Demonstrate how the project will benefit the skills and expertise of small and disadvantaged businesses, as applicable; (C) Demonstrate any participation of higher education, applied research institutions, workforce development entities and community-based organizations, that are willing to partner with the project to provide workers with skills relevant to the industry cluster needs of the region, with an emphasis on the use of on-the-job training, classroom occupational training or incumbent worker training, as applicable; and (D) Demonstrate any participation of investment organizations, venture development organizations, venture capital firms, revolving loan funders, angel investment groups, community lenders, community development financial institutions, rural business investment companies, small business companies (as defined in Section 103 of the Small Business Investment Act of 1958 (15 U.S.C. 662)), philanthropic organizations, and other institutions focused on expanding access to capital, are committed partners in the job accelerator partnership and willing to potentially invest in projects emerging from the jobs accelerator. (xiii) Describe the targeted region, including the following information: (A) Provide the latest Census Bureau information on the targeted region's median household income. (B) Provide the latest Census Bureau information on the targeted region's educational attainment, specifically the percentage of the population who hold a bachelor's degree. (C) Discuss how any direct career training will be provided to existing residents of the region (existing residents being those persons who live in the region at the time of application submission). (D) Discuss any local support for the RISE project. (E) Discuss the entrepreneurial commitment to the RISE project. (F) Discuss any innovative processes and technologies to be utilized in the targeted industry cluster(s) of the RISE project. (G) Discuss the initial and continuing capital investment in the RISE project. (H) Discuss any demand for regional and global markets of the product and/or service provided by the targeted industry cluster. (I) Discuss if the region contains any areas or communities that qualify for federal initiatives. (J) Elaborate on the current broadband service within the region and any plans to leverage the current broadband service or enhance broadband service in the region through the RISE project. (xiv) Financial information, including the following: (A) Identification of matching funds and other sources of funds for the project. Provide written commitments for matching funds and other sources of funds at the time the application is submitted. (B) Current financial statements and a narrative description demonstrating financial feasibility and sustainability of the project, all of which demonstrate sufficient resources and expertise to undertake and complete the project and how the project will be sustained following completion. (c) Upon receipt of a complete application, the Agency will determine if the applicant and project are eligible and whether the intended outcomes described meet the requirements of the RISE program. If the application is ineligible or not feasible, the Agency will inform the applicant in writing of the reasons for the Agency's determination and no further evaluation of the application will occur. § 4284.1116 [Reserved] § 4284.1117 Scoring RISE grant applications. The Agency will score each complete and eligible RISE application using the criteria specified in paragraphs (a) through (g) of this section, unless otherwise specified in a Federal Register (a) Demonstrated readiness. (b) Targeted initiatives. (c) Project support. (d) Targeted region. (1) If the targeted region has a median household income of: (i) 50% or less of state median household income; 5 points will be awarded; (ii) Over 50% and up to 80% of state median household income; 3 points will be awarded. (2) If the targeted region residents have the educational attainment of a bachelor's degree by: (i) 10% or less of the population; 5 points will be awarded; (ii) Over 10% and up to 30% of the population; 3 points will be awarded. (3) Existing residents of the targeted region will receive direct career training for new employment or upscaling to a high-wage job; 5 points will be awarded. (4) If the identified region has fewer than 50,000 residents according to the most recent decennial census; 5 points will be awarded. (e) RISE grant funds requested. (1) The RISE grant request is for $500,000 to $750,000; 10 points will be awarded. (2) The RISE grant request is for over $750,000 and up to $1,000,000; 5 points will be awarded. (f) Regional impact. (1) Targeted industry(ies) in the region is classified as an emerging industry; (2) Applicant demonstrates that the targeted industry(ies) in the region hold a competitive advantage or will enhance their competitive advantage through the RISE project; (3) Applicant demonstrates that industry provides significant support of regional assets, including broadband, and provides community and economic development support within the region; (4) The RISE project's forecasted outcomes align with RISE objectives; and (5) The RISE project will target support to existing industry(ies), whose significance in the region may be stagnant or on the decline but can be enhanced through the benefits of the RISE project. (g) Administrator points. Federal Register § 4284.1118 Selecting RISE grant applications for award. Unless otherwise provided for in a Federal Register § 4284.1119 Awarding and Administering RISE Grants. The Agency will award and administer RISE grants in accordance with departmental regulations and with the procedures and requirements specified in this part. (a) Bonding and insurance. (b) Letter of conditions. (c) Evidence of matching funds. (d) SAM requirements. (1) Be registered in SAM before submitting its application; (2) Provide a valid unique entity identifier in its application; and (3) Continue to maintain an active SAM registration with current information at all times during which it has an active Federal award or an application or plan under consideration by a Federal awarding agency. (e) Financial assistance agreement. (f) Grant approval. § 4284.1120 Servicing RISE grants. The Agency will service RISE grants in accordance with the requirements specified in departmental regulations, the financial assistance agreement, 7 CFR part 1951, subparts E and O, other than 7 CFR 1951.709(d)(1)(i)(B)(iv), and the requirements in § 4284.1120, except as specified in paragraphs (a) through (d) of this section. (a) Inspections. (b) Programmatic changes. (1) Prior Agency approval. (i) Grantees must submit requests for programmatic changes in writing to the Agency for Agency approval. (ii) Failure to obtain prior Agency approval of any such change could result in such remedies as suspension, termination, and recovery of grant funds. (iii) Prior Agency approval is required for all increases in project costs. Prior Agency approval is required for a decrease in project cost only if the decrease would have a negative effect on the long-term viability of the project. A decrease in project cost that does not have a negative impact on long-term viability requires Agency notification prior to disbursement of funds. If project costs decrease, the Agency will reduce the grant amount, if necessary, to maintain a maximum grant amount of no greater than 80 percent of total project activities as required in § 4284.1114(a). (2) Changes in project cost or scope. (3) Change of contractor or vendor. (i) Continue with the original contractor or vendor; (ii) Find another contractor or vendor that has qualifications and experience acceptable to the Agency to complete the project; or (iii) Terminate the grant by providing a written request to the Agency. No additional funding will be available from the Agency if costs for the project have increased. Any Agency decision will be provided in writing to the lead applicant. (c) Transfer of Applicant or Ownership. (1) The entity is determined by the Agency to be an eligible lead applicant entity under this subpart; and (2) The scope of the project for which the Agency funds will be used remain unchanged. (d) Disposition of acquired property. (e) Financial management system and records. (1) Financial management system. (i) Accurate, current, and complete disclosure of the financial results of each grant; (ii) Records that identify adequately the source and application of funds for grant-supporting activities, together with documentation to support the records. Those records must contain information pertaining to grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays, and income; and (iii) Effective control over and accountability for all funds. The grantee must adequately safeguard all such assets and must ensure that funds are used solely for authorized purposes. (2) Records. (f) Audit requirements. (g) Grant disbursement. (h) Reporting Requirements. (1) Federal Financial Reports. i.e., (2) Performance reports. (i) All activities funded with the grant funds; (ii) Evaluation of progress towards strategic initiatives identified in the application for the grant, including a discussion of any issues which may have occurred; (iii) Measurement of progress using performance measures during the project period, which may include the following: (A) High-wage jobs created; (B) High-wage jobs retained; (C) Private investment leveraged; (D) Businesses improved; (E) Businesses retained; (F) New business formations; (G) New products, prototypes and/or services commercialized; (H) Improvement of the value of existing products or services under development; (I) Regional collaboration as measured by the number of organizations actively engaged in the industry cluster and/or the number of symposia held by the industry cluster, including organizations that are not located in the immediate region defined by the partnership and/or the number of further cooperative agreements; (J) Number of educations and training activities relating to the innovation; (K) Number of innovative products, services and/or prototypes launched; (L) Number of jobs relocated from outside of the United States to the region; (M) Amount and number of new equity investments in industry cluster firms; (N) Amount and number of new loans to industry cluster firms; (O) Dollar increase in exports resulting from the project activities; (P) Percentage of employees for which training was provided; (Q) Improvement in sales of participating businesses; (R) Improvement in wages paid at participating businesses; (S) Improvement in income of participating workers; (T) Any measure determined appropriate by the Agency; and (U) Broadband development in the targeted region. (iv) Initiatives and timetable established for the next reporting period; and (v) Any additional information as found in the annual Federal Register §§ 4284.1121-4284.1130 [Reserved] § 4284.1131 OMB control number. The information collection requirements in this subpart are approved by the Office of Management and Budget (OMB) and assigned OMB control number 0570-0075.

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